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Breathe Right Strips

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What are the advantages and disadvantages for CNS taking Breathe Right strips into international markets?

Sports, nasal congestion, and snoring are global issues so the market for the product is needed. Natural products with no side effects that promote wellness such as the non-drug nasal strip addressed this growing global demand in the global market. Free global public relations created a lot of excitement when it was first introduced. The opportunity to increase their sales revenue from global markets with minimal financial risk.

The global market can’t be treated as one big market because its made up of many discrete markets with local customs and norms, so it’s difficult to truly have global or other marketing strategies. The way in which the product should be positioned, priced, and promoted in each country will take resources, time, and money to identify and implement the correct marketing variables. The high costs of developing new packaging and advertising, educating the new potential consumers, and finding efficient distributors and channels.

What type of a global company is CNS?
The type of global company CNS is functioning as a joint venture with Blue Farm in Italy as an international firm.

What is the basis for your opinion? What are the other means for CNS’ global market entry?

These two companies, one being foreign and one local firm invest together and created a local business together. They both are retaining their own ownership, control and profits from the new venture.

Why do you think they did not choose licensing, for example?

Licensing would have forced them to give up their rights to their trademark, patent, trade secrets or other similarly valued items of intellectual property in return for royalty for a fee. Although this option is of a lower risk, CAN has a marketable product that will sell anywhere because of what it does. It is endorsed by top athletes and they have the necessary financial, physical, and managerial resources to be more independent in global markets.

2.What are the advantages to CNS of

(a) using its three-stage process to enter new global markets and

(b) having specific criteria to move through the stages?

Why should a company go through this process?

What can happen if they don’t?

Using the CNS criteria, with what you know, which countries should have highest priority for CNS? MATTEL

Are there any examples of companies that have failed in their global marketing entry strategies? Why do you think they failed?

The Barbie concept Mattel introduced in Shanghai seemed to have been approached too aggressively. Barbie was relatively unfamiliar and didn’t have the audience base to guarantee a return on the investment. It was also priced too expensive averaging around $156. She was not associated with any cultural significance for Chinese girls or young women and the lifestyle change and cultural differences, plus she was way too sexy for little Chinese girls. There was also an abundance of knock-off Barbie dolls on the market.

How does CNS decide which countries to enter with their Breathe Right Strip?

Depending on the size of the over-the-counter market, CNS should be looking at the per capita spending by consumers in that market and the future prospects for growth potential price in each market. The availability of local partners with a demonstrated presence in the markets with an ability to execute in terms of sales, marketing, distribution, and also part of the entrepreneurial spirit should be reflective of who CNS is. Local partner would be the key criteria, by believing in the product and our ability to find a great distribution partner.

How the product will be positioned, priced, and promoted in each country takes resource time and money to identify and implement; which marketing mix variables should CNS emphasize the most to succeed in a global arena?



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